THE management of steel maker BlueScope is under heavy fire from politicians and unions for paying more than $3 million in executive bonuses while sacking 1000 workers.

Independent senator Nick Xenophon and Australian Workers Union secretary Paul Howes attacked the bonuses, which included chief executive Paul O’Malley receiving nearly $721,000 in addition to his base salary of nearly $2 million.

Labor left-wing senator Doug Cameron said the management’s attitude was ”immoral, reprehensible and unacceptable”.

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Senator Cameron, a convener of the Left, said it was ”absolutely unbelievable” that huge bonuses were paid while workers were being laid off.

BlueScope – Australia’s biggest steel maker – this week announced 1000 workers and up to 400 contractors would go in Victoria and New South Wales; the company had a loss of more than $1 billion.

Mr Howes said: ”I’m literally speechless.” His said his union’s members were furious and the shareholders had every right to be outraged.

”During the global financial crisis the company imposed a pay freeze.

”It’s now saying this is worse than the GFC. There should be a pay freeze [on executive salaries],” he said.

Senator Xenophon said the company’s operating cash flow was only $21 million last year, so 15 per cent had gone in executive salaries.

Describing the bonuses as ”obscene”, Senator Xenophon said the government should reduce its $100 million support for BlueScope by at least the $3,052,000 paid in bonuses.

A BlueScope spokesman said executive bonuses paid to Australian-based executives had fallen by more than 10 per cent in 2011.

The total of bonuses paid to Australian-based executives represented 2.5 per cent of the total payments to employees under BlueScope’s global incentive programs.

Labor MPs took up the plight of manufacturing in caucus yesterday, as Treasurer Wayne Swan said he would talk to mining companies about blocks to local manufacturers bidding for business in investment projects.

Mr Swan said he had heard that some Australian businesses were not even getting the opportunity to pitch for the business on a commercial basis.

”I’m going to examine those claims closely with the industry,” he told the ABC.

”I would be very disturbed if that was the way it was going in some of the big projects.”

Labor Left co-convener Stephen Jones, who chairs a caucus group on manufacturing, told caucus that local industry should at least get equal access to the business generated by mining projects.

If the mining companies did not step up, the government should, he said.

Mr Swan dismissed calls for a sovereign wealth fund to try to rebalance the economy.

”It wouldn’t do anything in our current situation and wouldn’t do anything for some time to come,” he said.

Ms Gillard warned caucus there must be no retreat into protectionism and emphasised Australia’s need for foreign investment.

Labor backbenchers are to meet steel industry unions and employers tomorrow.